Sudden rising prices of raw materials companies overwhelmed lead-chromium pigment industry brewing price increase measures

After the Spring Festival, the prices of international non-ferrous metals futures markets continued to climb, especially the prices of gold, copper, zinc, aluminum and lead soared. As a result, the production costs of lead-chromium pigment companies in China have risen sharply, and production and management have struggled. For this reason, the Lead Coatings and Chromium Pigments Branch of the China National Coatings Industry Association recently organized a conference call for key domestic lead-chromium pigment companies to discuss the situation of the industry and jointly discuss the price increase strategy.

It is understood that the products produced by lead-chromium pigment companies include three major types of pigments: chrome yellow, molybdenum chrome red and zinc oxide. Lead chromate produced from lead metal is the main component of chrome yellow and molybdenum chrome red pigments, and its cost accounts for 50% to 60% of the product cost. Due to the impact of rising prices of international non-ferrous metal futures, the current price of domestic lead metal has risen from about 9,200 yuan/ton before the Spring Festival to about 12,800 yuan/ton, an increase of nearly 40%, which is the price of lead metal in the second half of 2003. After another big gain, another big gain. At the same time, the price of molybdate, another raw material for the production of molybdenum-chrome pigments, has risen by as much as 30%, and the price of zinc oxide for the production of rust-proof pigments has increased by 20%.

In the second half of last year, lead-chromium pigment companies had to adopt corresponding price increase measures due to the heavy burden of rising raw material prices. However, the increase in the price of enterprises relative to the rise in raw materials and various expenses is only a drop in the bucket. Some enterprises in the country that originally rely on meager profits to maintain production have already suffered losses, and it is difficult for the major manufacturers to operate. At present, lead-chromium pigment manufacturers only rely on management measures such as potential management, technological transformation, and development of new products to offset some of the increased costs of raw materials and energy prices, but they have no financial resources to digest the “three wastes” governance, safety production, occupational hygiene, etc. Increasing costs.

This round of metal lead, zinc and other major raw materials also appeared such a large increase, so that the production and operation of lead-chromium pigment enterprises worse. Industry analysts expect that the high prices of resource-based raw materials will be difficult to change in a short period of time, and prices may continue to rise in the future.

Under the severe situation, the Lead-Chromium Pigment Branch of China National Coatings Industry Association called a major domestic lead-chromium pigment backbone company to hold a conference call and make a decision. Each company can increase the price of its products according to its own specific conditions to ensure the normal production and operation of the company.

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